Retail Sourcing and Procurement Market Size, Forecast [2030]

Report Description

The global retail sourcing and procurement market was valued at USD 4.2 in 2020 and is projected to expand at a high CAGR during the forecast period, 2021 – 2028. The growth of the market is attributed to the rising implementation of the solutions by several retail businesses across the globe.

Get Free Sample Report

A sourcing and procurement solution for a retail industry grants an enterprise to computerize its expenditure management activities and enhance the efficiency of procure-to-pay processes. Ensuring to provide improved customer satisfaction, the key strategies of retail enterprises also include innovative planning and quality assurance. Such strategies are required to ensure good decision making of enterprises.

The procurement practices have been widely adopted by retail business organizations as the solutions helps to improve their overall performance. The sourcing and procurement solutions support organizations in purchasing related activities as well as other activities such as inventory, sourcing, contracting, and reflecting the updates made in any process or location in an enterprise. It also has a direct and significant impact on the bottom-line performance of an enterprise.

The solution can help an organization to evaluate and keep track of the business transaction and supplier performance, procuring goods in quick time, maximize saving, and most efficient transaction process. Therefore, the demand for the implementation of these technologies in the business is increasing. The expanding implementation of mobile applications, supporting tracking, and procurement processes are key factors that offer the computerization in procurement activities.

Additionally, the increasing technological adoption in retail sourcing and procurement solutions as well as adoption of advanced software present vital aspects for the market expansion. Various enterprises are entering into the retail industry due to several advantages such as less obstacles for small niche, rising online buying, as well as easy tracking services. Several end-users are becoming aware of these technology, thereby, leading the market growth.

Market Trends, Drivers, Restraints, and Opportunities

• High penetration of IoT and rising adoption of cloud technology are key factors that boost the demand for the solutions in businesses. This is expected to drive the market growth.
• Growing implementation of procurement and sourcing process by industries including food & beverages and apparel are projected to spur the market growth during the forecast period.
• Increasing demand for improved visibility in tracking related data, enhanced collaboration among retailers and suppliers, and centralized procurement process are projected to expand the market growth.
• Lack of enthusiasm to adopt innovative technology, inappropriate management, and growing raw material costs are expected to hamper the market expansion in the coming years.
• Increasing demand for store operations and inventory management as well as the wide R&D activities to improve the solution operation are creating numerous opportunities to push the market expansion.

Scope of the Report

The report on the global retail sourcing and procurement market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Retail Sourcing and Procurement Market Segment Insights

Strategic sourcing segment to account for a large market share

Based on solutions, the market is divided into contract management, procure-to-pay, spend analysis, strategic sourcing, and supplier management. The strategic sourcing segment is anticipated to account for a large market share during the forecast period owing to its growing implementation for gaining strategy support and to increase overall efficiency in the method of gathering, analyzing, and factoring of expenditure data into the procurement process.

Strategic sourcing includes enhancing long-term partnerships and evaluating high-volume purchases with a selective group of providers, which are able to provide quality services and products at a low cost. On the other hand, the spend analysis segment is projected to register a significant CAGR in the analysis years owing to the increasing awareness of potential savings in the organization based especially in the European and Asia Pacific regions. A spend tool enables transparency into expenditure and helps category managers to look for innovative saving opportunities.

Consulting segment is expected to constitute a large market share

On the basis of services, the global retail sourcing and procurement market is classified into consulting, implementation, and training & support. The consulting segment is expected to constitute a large market share in the coming years due to the increasing demand for retail sourcing and procurement across the globe for consulting service purposes across several enterprises.

The growing developments and changes in business practices, consumer demands technology, personal requirements, hiring, and other concerns to improve the entire business operation are key aspects that boost the segment growth.

Get Free Sample Report

On-premise segment is expected to dominate the market

Based on deployments, the market is segmented into cloud, hybrid, and on-premise. The on-premise segment is expected to dominate the market in the coming years owing to the increasing adoption of running software at remote locations. Rising adoption of the solution by small and medium-sized businesses due to its relatively secure in data protection and accountability of handling data are key drivers that fuel the segment expansion.

On the other hand, the cloud segment is projected to exhibit a large CAGR during the analysis period owing to its rising implementation to avail certain benefits such as streamlining the source-to-pay process using social collaboration and automation, which result in gaining high margins by managing the costs. Without any extra IT effort, the cloud-based software helps in seamless accessibility to the device.

Small & medium enterprise (SME) segment is projected to register a robust growth rate

On the basis of end-users, the global retail sourcing and procurement market is bifurcated into small & medium enterprise (SME) and large enterprise. The small & medium enterprise (SME) segment is projected to register a robust growth rate during the forecast years owing to the high adoption of the solutions from small and medium business organization. Increasing demand for product availability and timely delivery along with retaining the same margin levels by the organizations present key aspects for the segment growth.

North America is anticipated to dominate the market

In terms of regions, the global retail sourcing and procurement market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period owing to the rising adoption of computerization in procurement and sourcing processes, as well as continuous absorption of technological developments in the field of analytics, cloud, and BYOD trends in this region.

On the other hand, the market in Asia Pacific is projected to expand at considerable CAGR in the coming years due to the enlarged expansion of retail businesses in past few years. Major economies in the region such as Japan, India, and China are emerging as the key destinations for the retail industry due to favorable market regulations and other government initiatives.

Get Free Sample Report